Ha yes of course being “Rich”, almost everyone has dreams of being rich, and the rest are lying! But what does being rich really mean? Today we’re going to explore what being rich is and provide a little insight on how we think you can get “there”.
Rich: “having abundant possessions and especially material wealth.” This is the latest definition according to Merriam-Webster dictionary. That is ridiculous! How more vague could that definition be. Sure, when we think of someone being rich we may think of abundance, but the truth here is that everything is relative, and there are a few different forms that wealth can take on.
Health is Wealth
Recently, my close friend fainted in a marathon and almost died from the experience. He had the relief of a lifetime when the doctor told him he would be fine, but remembers thinking that he would give up all the money in the world to go back to his full health. I myself have had a few health issues, and overtime I would give up $1 billion to be in full health. This should be an impactful statement for you. If you are not in top health, then you cannot enjoy a single penny of the money you make, so focus on your health above all else. Sure you need to make money but your health is number 1. Let’s take an example of two people, one has $100mm and a partially paralyzing illness, in which he cannot move from the waste down. The other works a 9-5 and barely gets by but he is in perfect shape and has no health problems. Who is richer? I think most logical people would say the person with no money is richer. Financially, of course the person with money is “richer”, but if you can’t move the money doesn’t help much. Think about not being able to take a breath of fresh air, slowly sip that morning coffee, or enjoy an event with your family. This is really the most important point of the article. Health is number one folks.
Youth is wealth
If you are of a young age, I consider you rich and here’s why. You have more time. It is that simple. It’s not so much about how old you are, but rather that the younger you are, the more likely it is that you have more time to live. If you are older, and relatively healthy, then you should feel rich, very very rich. Its funny, most people would find that last statement crazy, until something in life really impacts their health, and then they agree outright. All else equal though, more youth is more time to enjoy that cash.
Now, this creates an interesting relationship with money. Some of the things that you want in life may require money (some, not all), so its clear that you’ll want to make some money, but at what point do you need to shift your focus to enjoyment? For instance, if you spend the majority of your life making money and have $100 million at age 70, that’s awesome, except you don’t have much time to enjoy it, do you? So this is why we say that youth is wealth. The younger that you are, the more time you have to do everything; in this respect time is much more valuable than money. The bottom line is this; if you are older, and you made some money, spent it all, but had amazing life experiences, then you are a winner compared to someone who has $100 million but hasn’t experienced life at all.
Relationship between wealth and health
Given that we know our health is the most important part of life, it’s important to know that having money does help our life in terms of health but it’s a depleting relationship. Basically, as you increase your effort from working, it will increase your overall health (you’ll have money for healthcare insurance, and any immediate emergency expenses), but go too far and you will negatively impact your health…by working too hard. So the right thing to do here is of course strike a nice balance.
Financial Wealth
Now that we understand financial wealth is not the only the form of wealth, let’s dive into what financial wealth is as of 2017 (adjusted for purchasing power). Purchasing power matters because here’s the thing; it used to be that $1 million could buy you all that life had to offer, but that is not really the case anymore. If you have $1 million you’re definitely comfortable and you’ll be able to pay for necessary healthcare and living expenses, but you’re not living the “lifestyle”. Well say that $2 million is rich as of today. Then again there are billionaires out there so it’s all relative. So, go out there and get rich, but make sure to have some fun along the way!
See below for the three best books on health and wealth out there. I’ve read countless books in the personal finance and health space, and these are the best. Enjoy!
How to Get Rich: One of the World’s Greatest Entrepreneurs Shares His Secrets
The Snowball: Warren Buffett and the Business of Life